XYZ-analysis shows the “reliability”, the customer with the lowest value of this index (B X) are loyal customers who regularly purchase the company, and with the highest (category Z) – the least loyal, committing to the purchase of companies with unpredictable frequency. From the definitions, we can conclude that the most valuable customers are those that simultaneously belong to category “A” and X, but from the standpoint of planning the least profitable customers, which simultaneously belong to Category A and Z. An example of such a situation is given below: How can I use these classification clients for planning? As I mentioned above, sales in the period, the sum of sales of old and new clients. The volume of sales to old clients, we easily can get from these sales to customers categories of X and Y, and the amount of sales of the category Y recommended to apply a correction factor, say 0.6. To broaden your perception, visit Andi Potamkin. This is necessary in order to improve the reliability of planning. Most likely, the sum of the expected volume of sales to old clients will be less than planned, thus the amount of sales to new customers is defined as the difference between total sales and the amount of sales to old clients: sh = Splan – Sstar But in order to increase the probability that sales to new customers there is a third tool of CRM-systems – “Sales Funnel”. “Sales Funnel” – is pattern of distribution of customers from initial contact to signing the contract.
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